Monday, January 13, 2025

Is Phillips 66 becoming a natural gas company?

Happy Monday!  Welcome back to another week of ESC News Blog!   

Did anyone happen to read The Houston Chronicle’s Business Section on January 8, 2025, their article titled, “Phillips expanding stake in natural gas liquids”?  In the article, it goes on to speak on how mergers and acquisitions are already starting this year with Phillips 66 buying around 350 miles of natural gas pipelines, around 885 miles NGL pipelines which connect Delaware, Midland, and Eagle Ford basins, and a processing facility near Corpus Christi for $2.2 billion.   Phillips 66 will be acquiring Epic Y-Grade GP, LLC and Epic Y-Grade, LP and their assets.  The purchase is in line with Phillips 66’s strategy to expand its natural gas division, hence growing its chemical division.  In early 2023, Phillips 66 acquired DCP Midstream for $3.8 billion and now owns 86.8% interest and it is now part of the Phillips 66 family.  The natural gas division being acquired from Epic Midstream Holdings will help Phillips 66 move more into chemicals like ethane, butane, and propane which are cleaner burning and are expected to have a long future.  The purchase will help them move producers’ natural gas to the Gulf Coast to either Corpus Christi, Sweeney, or Mount Belvieu where they can be separated into its basic components at its facilities and be exported or used in the industrial complexes along the Gulf Coast.  If you would like to read more of The Houston Chronicle’s article, please click the link: Phillips 66 to expand Texas natural gas liquids pipeline, processing.

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We hope you have a wonderful evening!

**Disclaimer: You may be charged a fee to read The Houston Chronicle’s article. **